Obstacles to Increasing Tax Revenues in Low Income Countries (Research Note)

Why do the governments of low income countries not raise more tax revenues?

Mick Moore identifies a set of fundamental economic and political factors that seem to explain both the 'stickiness' of tax takes within individual countries and the long-term variation in tax takes in different countries.

He comes to the conclusion that effective tax reform typically requires large doses of political cunning. Raising more revenue will require identifying how best to combine technical knowledge and politics within each specific context, and may best be wrapped in the soothing language of ‘tax administration improvements’.

This Research Note is published as part of the UNRISD Road to Addis and Beyond Series, bringing together a number of short essays that engage with current Financing for Development debates.